Which bank merged with AU Small Finance Bank as per the approval of the Reserve Bank of India (RBI) in 2024?

Correct option is A

The correct answer is: (a) Fincare Small Finance Bank

Explanation:

• In 2024, the Reserve Bank of India approved the merger of Fincare Small Finance Bank with AU Small Finance Bank.
• This was the first merger of two Small Finance Banks in India.
• The merger strengthened AU SFB’s customer base, branch network, and digital presence.

Information Booster:

• Fincare SFB primarily operated in South & West India, adding regional strength to AU SFB.
• AU Small Finance Bank is India’s largest SFB by assets and market presence.
• The merger improved AU SFB’s access to low-cost deposits and microfinance customers.
• RBI aims to encourage consolidation for stronger banking stability.
• The merged entity benefits from an expanded loan portfolio and rural outreach.